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Auto Shows Brexit, Covid-19… towards a record bankruptcy of SMEs in the United Kingdom in 2021?

13:10  11 january  2021
13:10  11 january  2021 Source:   lepoint.fr

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The economic impact of the global COVID - 19 pandemic on the United Kingdom has been largely disruptive. It has adversely affected travel, financial markets, employment, a number of industries

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Brexit, Covid-19… vers un record de faillites de PME au Royaume-Uni en 2021 ? © Pixabay Brexit, Covid-19… towards a record of SME bankruptcies in the United Kingdom in 2021? In the United Kingdom, 250,000 SME bankruptcies are to be feared, in the absence of new aid, according to the FSB, which underlines the double shock of the Covid-19 pandemic and Brexit.

The economy of United Kingdom is decidedly battered at the start of 2021. Brexit , Covid-19 ... Faced with the double shock, at least 250,000 SMEs have left to file bankruptcy in the United Kingdom this year without additional aid, a record, warns the Federation of Small Businesses (FSB). "There were no new business supports introduced as restrictions on activity intensified" and "we risk the demise of thousands of great small businesses that would ultimately be viable, with a huge cost to local communities, ”remarks FSB President Mike Cherry. He notably mentions the need for debt facilities and "bridging bonds" to help cash-strapped SMEs adjust to new Brexit-related obligations.

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Almost 5% of the 1,400 companies surveyed for this study plan to close this year, out of around 5.9 million SMEs in the United Kingdom, the FSB said in a statement. Almost a quarter of SMEs (23%) downsized in the last quarter, up from 13% at the start of last year, and 14% say they will be forced to cut positions in the next three months. come. Some 16.8 million people work for SMEs, recalls the FSB. Finally, the proportion of SMEs that expect their profitability to decline this quarter is also at a record level, 58%, according to the FSB's SME index.

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Mr. Cherry underlines that this investigation was carried out before the implementation of the current containment in England and deplores that after "an exceptionally good start" of the systems of government aid to companies during the first containment in the spring, the measures of support are now disappointing. "There is substantial aid to keep small businesses, restaurants and leisure activities afloat" but "the government must realize that the SME community goes well beyond these three sectors," continues Mr. Cherry.

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Covid - 19 is a gift that never stops giving to a select few. But how will the techno-oligarchy maintain a degree of social credibility and control in an impoverished There is enough money floating around to reduce our cities into bedlams of anarchy as seen in the United States today. The crumbs left over

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Last week, the UK markets authority assessed in another study that some 4,000 financial companies, mostly small and medium-sized, were at risk of shutting down . The United Kingdom is the European country most bereaved by the novel coronavirus pandemic, and one of those where the economic contraction engendered was the most brutal, after several lockdowns and numerous measures of distancing and brakes on activity .

>> To read also - Brexit: “France risks losing more than the United Kingdom!”

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